Germany Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027

Pages: 93 Published: July 21, 2022 Report Code: GDDF0776MR

The German government allocated a defense budget of $60.1 billion in 2022. The budget allocation is expected to grow at a CAGR of more than 4% during the forecast period 2023-2027. The growth of German defense market is primarily driven by the need to modernize the defense equipment. Much of Germany’s fleet requires substantial modernization and updating due to years of low spending levels. As readiness levels are now so low and with platforms reaching the end of their life span, Germany is forced to modernize platforms across all domains.

The Germany defense market research report provides an executive-level overview of the defense market in Germany today, with detailed forecasts of key indicators up to 2027. Published annually, the report provides a detailed analysis of the near-term opportunities, competitive dynamics, and evolution of demand by defense sectors, along with import-export dynamics, as well as a review of key regulatory trends.

Germany Defense Market Outlook

Germany Defense Market Size

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Germany Defense Market Drivers

Much of Germany’s fleet requires substantial modernization and updating due to years of low spending levels. As readiness levels are now so low and with platforms reaching the end of their life span, Germany is forced to modernize platforms across all domains. Furthermore, the war in Ukraine led Germany to announce the biggest increase in its defense budget since the end of the Cold War. The need to modernize the Bundeswehr has been brought into the spotlight following the Russian invasion of Ukraine, with conventional and traditional warfare once more the focus of policymakers.

Military Doctrines and Defense Strategies in Germany

Germany’s security rests upon stable and long-lasting relationships built with global and regional allies. Hence, involvement in NATO and the EU help direct the German military doctrine. The country prides itself on its commitment to upholding peace, stability, and security by providing a well-networked, credible, and forward-thinking force.

German defense strategy is focused on increasing the presence of the German Armed Forces abroad. In order to address current and emerging threats, action will be augmented between the national and international levels and will often consist of unilateral, bilateral, and multilateral action. To create the best economic environment to support the armed forces so that they can undertake their duties, the German government is focusing on creating a more integrated European defense market and encouraging multinational armaments cooperation.

Germany Defense Market Segmentation by Sector

Military fixed-wing, military infrastructure and logistics, and naval vessels and surface combatants feature as the top three sectors in the market. Other prominent sectors include military ammunitions, military rotorcraft, missile and missile defense systems market, tactical communications, military land vehicles, military UAV, submarine, military radar, electronic warfare systems, underwater warfare systems, EOIR systems, artillery, military simulation and training, body armor and personal protection, unmanned ground vehicles, and INS GNSS.

Germany Defense Market Analysis by Sector

Germany Defense Market Share by Sector

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Leading Defense Companies in Germany

  • Airbus Defence and Space
  • Rheinmetall AG
  • MTU Aero Engines AG
  • Lufthansa Technik AG
  • Diehl Stiftung & Co KG
  • Rohde & Schwarz GmbH & Co KG
  • MTU Aero Engines Investment GmbH & Co. KG
  • Hensoldt AG
  • Zollner Elektronik AG
  • OHB SE

Germany Defense Market Share by Companies

Top Defense Companies in Germany

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Germany Defense Market Overview

Market Size 2022 $60.1 billion
CAGR >4%
Forecast Period 2023-2027
Key Sectors Military Fixed-Wing, Military Infrastructure and Logistics, Naval Vessels and Surface Combatants, Military Ammunitions, Military Rotorcraft, Missile and Missile Defense Systems, Tactical Communications, Military Land Vehicles, Military UAV, Submarine, Military Radar, Electronic Warfare Systems, Underwater Warfare Systems, EOIR Systems, Artillery, Military Simulation and Training, Body Armor and Personal Protection, Unmanned Ground Vehicles, and INS GNSS
Leading Defense Companies Rheinmetall AG, Lockheed Martin, Airbus Defense and Space, MTU Aero Engines AG, Lufthansa Technik AG, and Diehl Stiftung & Co KG among others.

Germany Defense Market Report Scope

  • A detailed analysis of the German 2022 defense budget, broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Explanation of the procurement policy and process. This is coupled with an analysis of the German military doctrine and strategy to provide a comprehensive overview of German military regulation.
  • Examination of political alliances and perceived security threats to Germany; there help to explain trends in spending and modernization.
  • Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Analysis of the competitive landscape of Germany’s defense industry.

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the German defense market over the next five years.
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the German market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving the German defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the German government.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contract awarded, and financial analysis, wherever available.

Key Players

Krauss-Maffei Wegmann
Eurofighter Jagdflugzeug GmbH
Dassault Aviation
Airbus SE
Indra Sistemas
Damen Schelde Naval shipbuilding
Blohm+Voss
Lockheed Martin Corp
The Boeing Co
Leonardo SpA
NHIndustries
Lurssen
Rheinmetall
ThyssenKrupp Marine Systems
Iveco

Table of Contents

Table of Contents

Executive Summary

Defense Budget Assessment

Budgeting Process

Defense Market Size Historical And Forecast

Drivers Of Defense Expenditure

Analysis Of Defense Budget Allocation

Military Doctrine And Security Environment

Military Doctrine And Strategy

Political And Strategic Alliances

Market Entry Strategy And Regulations

Defense Procurement Bodies

Funding Opportunities

Trade Associations and Defense Clusters

Types of Contracts and Opportunities

Types of Procurement Procedure

Procurement Policy and Market Regulations

Market Entry Routes

Key Challenges

Major Deals and M&A

Market Attractiveness And Emerging Opportunities

Market Attractiveness, 2022–27

Top Defense Segments By Value

Import And Export Market Dynamics

Import Market Dynamics

Export Market Dynamics

Defense Platform Acquisitions

Defense Platform Acquisitions By Value

MKS 180 Multirole Combat Ship (F126 Frigate)

F-35A

CH-47F

European MALE RPAS (Eurodrone)

Eurofighter Typhoon ECR

Sachsen-class (F124) Replacement

Maritime Airborne Warfare System (MAWS)

Taktisches Luftverteidigungssystem (TLVS)

New Light Utility Helicopter Acquisition

Fleet Size

Competitive Landscape

Defense Companies Operating In Germany

Main Defense Companies

Appendix

About This Report

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Frequently Asked Questions

The defense market size in Germany was valued at $60.1 billion in 2022.

The defense market in Germany is expected to grow at a CAGR of more than 4% during the forecast period 2023-2027.

The growth of German defense market is primarily driven by the need to modernize the defense equipment and drive Germany’s defense spending.

Military fixed wing, and military infrastructure & logistics, naval vessels & surface combatants, military rotorcraft, and military UAV are key segments of the defense market in Germany.

The leading companies in the German defense industry are Rheinmetall AG, Lockheed Martin, Airbus Defense and Space, MTU Aero Engines AG, Lufthansa Technik AG, and Diehl Stiftung & Co KG among others.

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